HOUSING&COMMUNAL ECONOMY: ALL AS BEFORE

The year of 2006. The half-destroyed national housing and communal economy is still alive. It functions, though controls only the cleanness of the refuse bins. The volume of refuse increases year by year.

Amount of gas and water supply to population over last period

1998

1999

2000

2001

2002

2003

2004

Per capita gas consumption

Network gas, cu m

Total

182,9

208,4

214,6

253,3

297,7

332,3

328,6

In city

329,5

385,4

391,4

464,3

544,3

594,8

596,8

In village

27,6

23,9

31,5

35,8

44,4

53,5

44,1

Natural gas, in kg

Total

1,0

0,4

0,6

2,4

2,3

1,7

1,3

In city

0,2

0,1

0,2

3,8

3,6

2,5

1,8

In village

1,8

0,8

1,1

0,9

0,9

0,9

0,8

Water, per liter

Total

210,0

180,4

183,3

175,5

175,1

180,8

179,0

In city

405,8

345,9

356,3

343,3

339,4

338,5

-

In village

7,6

2,5

8,0

4,0

2,5

6,3

13,4

Source: State Statistics Committee

So few people will not have complains on dwelling conditions, to be more exact, the quality of services rendered by the HCE. The amortization services actually do not exist today. However, the HCE at definite bribe permit the rebuilding or expansion of apartment through additional balconies, which damages the firmness of the building.

At present the HCE renders two types of services: collection of payments for amortization services and exploitation of buildings and delivery of return bins. Indeed, following rise in diesel fuel the cars came for return bins every other day, finding it as a way of compensation. Obviously, the functioning of HCEs now is less efficiently system.

The action by the government shows it has no exact strategy on cardinal reforming of the HCEs and changing it to an effectively functioning mechanism. Even an only way for establishment of effective functioning of the communal sector the development of market relationships through attracting private investors, restricted itself on transition of the electricity distribution network to the a management of the Turkish company Barmek.

The HCE has also complains. They are dissatisfied with the law tariffs of the community services. The population pays for services at tariffs set by the Cabinet of Ministers, which are considerably lower than its direct cost. It is necessary to note that devices and materials needed for the HCE are purchased at prices, which considerably exceed the amount of collection from the population. As a result, the HCE works in loss.

Incompliance in the tariffs for communal services to expenses of the HCEs are result of a painful problem tough social condition of the overwhelming part of the population.

It is good that privileged system for payment of communal services were rejected in 2001. The privileges were replaced with money compensation. It actually promoted rational consumption of services.

Logically we come to an opinion that at the moment the government would hardly have serious alternative to survive from the situation but gradual rise in tariffs, that we observe over the period. It will more probably lead to strengthening of non-payments, as it was in case with Azerigas. Furthermore it could entail social dissatisfaction. It could be a decisive factor preventing the government from reforming the HCE.

Starting from 1995 the number of employees in this sector increases steadily, which consequently leads to rise in expenses for labor payment. However, one can expect cut in the HCE employees, as many communal services are rendered by definite organization (electricity-, gas-, water supply). Respectively. These organizations undertake all exploitation expenses on the their part of infrastructure and also receive incomes and profits from the services rendered.

Moreover, it was revealed that expenses of the HCE are high due to inefficient use of public funds. The same time practice shows that management of this sphere by other renters, or manager, in most cases by foreigners, do end ideally always. The investigation carried out by the Prosecutor Generals Office into the exaggeration of figures, wrong development of financial accounts, and use of additional expenses by the company is nearing to end.

The finance minister noted the existence of many problems in the activities of Barmek from the economic viewpoint and untargeted inefficient investments by the company

The Finances Ministry has submitted the results of investigation targeting the analysis of the activities of Barmek-Azerbaijan, an energy distributor, to relevant bodies.

Thus, in this stage it is necessary to carry out full analysis of the situation in the HCE starting from the technical state to the quality of book-keeping and financial control with definition of proper optimal structure of expenses and respectively real direct price of HCE services. All directions of financial flows, as well as black holes the funds disappear, can be revealed in this sector of economy in this way.

Moscow's death toll from confirmed coronavirus cases rises by 24 to 3,953
Moscow's death toll from confirmed coronavirus cases rises by 24 to 3,953
Iran files lawsuit against U.S. over sanctions amid COVID-19 fight
Iran files lawsuit against U.S. over sanctions amid COVID-19 fight
Turkey's daily COVID-19 cases drop slightly for 5th day
Turkey's daily COVID-19 cases drop slightly for 5th day
Loading Bars
Latest
Moscow's death toll from confirmed coronavirus cases rises by 24 to 3,953
Iran files lawsuit against U.S. over sanctions amid COVID-19 fight
Turkey's daily COVID-19 cases drop slightly for 5th day
WHO halts hydroxychloroquine, HIV drugs in COVID trials after failure to reduce death
WHO reports single-day increase in coronavirus cases by over 212,000
A patient with a coronavirus died in Bukhara region
Two new COVID-19 cases confirmed in Georgia
Azerbaijan to simplify its int'l road transport movement with new e-technology
Turkey's cement export to Iraq drops
Fire in power plant in SW Iran contained
TRACECA to implement pilot project on applying electronic permits
Azerbaijani university opens tender on repair work
Azerbaijan confirms 534 new COVID-19 cases
AZAL to perform another additional special flight to Istanbul
1 dead, 3 wounded in U.S. nightclub shooting
Brazil reports over 1.5 mln COVID-19 cases, with 63,174 deaths
Azerbaijan to increase share of renewables in electricity generation
Azerbaijan Investment Company purchasing shares
Foreign trade operations between Azerbaijan, Malaysia almost double
Volume of S.Korean goods import to Azerbaijan grows
Turkmenistan to start second stage of cement plant construction in Lebap region
New tourist zone to open in Baku (PHOTO)
BSTDB may release second tranche of manat bonds
Azerbaijani Kapital Bank expanding mortgage lending
State Commodity Exchange of Turkmenistan reveals data for 1H2020
Azerbaijan-Mexico five-month trade turnover increases
Turkey unveils volume of cargo transshipment from Ukraine via its ports
Activity of Iran's Aras Free Zone skyrockets, compared to last year
Talks over Energy Charter Treaty's modernization to start soon (PHOTO)
Turkmenistan to build new plants for mineral fertilizer production
Iran reveals its COVID-19 data for July 4
Georgia sees increase in prices of real estate for rent in suburbs
Suicide car bomber hits checkpoint at Somalia's Mogadishu port
Shell CEO does not rule out moving headquarters to Britain
Fitch Ratings: Growth in Azerbaijan's insurance sector depends on regulated tariffs
Weekly review of Azerbaijan's precious metals market (June 26-July 3)
Oil transportation via Ceyhan-Kirikkale pipeline through Turkey up
Lithuania considers transport co-op with Kazakhstan among top priorities
Samarkand Automobile Plant in Uzbekistan to produce ambulances
Uzbekistan increases number of refrigerated cargo wagons
Indonesia reports 1,447 new coronavirus infections
Overall production up in Turkmenistan with major part falling on private sector
China allocates humanitarian aid to Kazakhstan, backing anti-COVID battle
Turkmenistan reveals its oil production data for 1H2020
Iran's government stays committed to raising production
Uzbekistan receiving humanitarian aid from US charities
Weekly review of Azerbaijani currency market (June 26-July 3)
Azerbaijan's Bank BTB increases its total liabilities
Georgian municipality reveals volume of potato harvest
India coronavirus cases hit record high amid monsoon rains
Litzenberger: US, Azerbaijan share important partnership (VIDEO)
Russia's coronavirus cases near 675,000, death toll passes 10,000
Australia's Victoria reports 108 new coronavirus cases, biggest jump since March
UNEC brand was also known in Estonia
Uzbekistan to direct IDA's loan on urgent COVID-19-response measures
Least attractive Kazakh economy sectors for French companies revealed
Turkmenistan's cargo transportation for 1H2020 revealed
Turkmenistan's GDP increases in 1H2020
Tokyo new coronavirus infections over 100 for third day
Seven police hurt in violence at London music event
Europe to supply Asian countries with olive products through Georgia
Georgia reports new cases of coronavirus
Brazil health regulator Anvisa allows Chinese COVID-19 vaccine trial
Kazakhstan's import of Canada-made goods nearly twofold down
Armenia violates ceasefire with Azerbaijan 42 times
Azerbaijan's SOCAR Polymer planning to produce next polypropylene batch
Aeromexico shares rise for second day despite missed debt payment
Kazakhstan’s oil producing company to buy pipes via tender
Kyrgyzstan’s COVID-19 cases reach 7,094
Kazakhstan confirms 1,644 new coronavirus cases over past 24 hours
Israeli PM asks citizens to follow COVID-19 restrictions due to surge in morbidity
Air France set to cut more than 7,500 jobs
Turkey nearly halves leather export to Uzbekistan
Iran cuts import of electrical goods from Turkey
Iran among top three countries in world for caviar producing, sturgeon farming
Brazil reports over 1.5 mln COVID-19 cases, with 63,174 deaths
Geostat reveals producer price indices for services in Georgia
Chinese mainland reports 3 new confirmed COVID-19 cases
Japan's Cokey Systems talks its activities in Uzbekistan
4 dead in small plane crash in Utah mountains
Global coronavirus cases rise to more than 11 million
4 injured in shooting at shopping mall in U.S. Alabama
U.S. South Carolina reports 20.7 pct positivity rate from new coronavirus tests
Export of Turkish chemicals to Uzbekistan declines
Geostat: Georgia increases fruit exports
Mexican soldiers kill 12 in cartel clash near border
Iran says to announce cause of nuclear facility "incident" at "appropriate time"
4 killed, 108 wounded in fireworks factory blast in NW Turkey: ministers
Brazil set to pass 1.5 million coronavirus cases, cities reopen anyway
Zarif writes to Borrell on EU's noncompliance with JCPOA
WHO sees first results from COVID drug trials within two weeks
Number of job seekers from Turkey to Kazakhstan increasing
Spain registers rise in new COVID-19 cases in past week
Saudi-led coalition intercepts 4 bomb-laden drones
Switzerland to open borders for Georgian citizens from July 20
Over 400 beat COVID-19 in Kazakhstan
Turkey reports 1,172 new COVID-19 cases, 203,456 in total
Official talks use of RES by private companies in Kazakhstan's Karaganda
Pakistani foreign minister tests positive for COVID-19
Hungary's parliament adopts 2021 budget
All news